Dividing, changing and merging ground lease rights

The leaseholder who wants to divide, change or merge his ground lease rights always needs permission from the municipality.

  • Dividing: the leaseholder wants to sell part of his ground lease right. This can be done by dividing it into (2 or more) pieces or in the form of apartments. 
  • Changing: an amendment to the ground lease right is required if you want to change some of the conditions.
  • Merging: combining 2 rights to ground lease.

Notarial act

  • You find a notary. Dividing, changing or merging must be recorded in a notarial act. The notary can advise you on this.
  • In a number of cases a division permit (based on the housing regulation) is required for the permission to divide the ground lease right. For more information, visit: Permit for dividing home in land register.
  • The notary will send the required documents to the ground lease department (Erfpachtbedrijf):

    • draft of act of division
    • division drawing
    • appraisal report on the value of the homes or a report on the number of points and the rental value
    • division permit

After receiving the documents, the application will be processed.

Costs of dividing leasehold

The costs to be paid to the municipality may be:

  • costs of dividing into separate plots
  • costs of dividing into apartment rights
  • costs of dividing a joint ground rent
  • costs of changing a division
  • administration costs

The municipality calculates the costs for each new ground lease or apartment right. When dividing into more rights, the number of rights minus 1 applies. For the rates, visit Ground lease conditions.

Administration costs

When making the division, the municipality adds administration costs to the ground rent for each leasehold in perpetuity. After paying off the ground rent, the administration costs are calculated as a one-time buy out. When dividing into separate rights, the number of rights to be charged minus 1 applies. For the rates, visit Ground lease conditions.

Added value

You have a right to leasehold in perpetuity and you would like to change the use of the land and/or structures. In that case, you may have to pay a sum to the municipality for the added value of the land.

Added value of the land can arise to due:

  • division into apartment rights
  • extending the built-up area
  • changing the function
  • changing the special conditions
  • changing the division

The municipality establishes the added value on the basis of the appraisal and takes into account the necessary construction costs. You can pay the added value as ground rent or as a buy-out sum.

Rooftop structures and extensions

If you extend your home on leasehold land, the municipality will not charge the added value for an extension up to 50 square metres of the gross floor surface in houses more than 20 years old. For more information, visit Apply for an all-in-one building permit.

Published: 5 March 2018Modified: 27 July 2020